Toward a Greener Planet Through IoT JOI_20230426_eBook | Page 149

Digital Transformation Value Indicators for a Sustainable and Circular Economy

performed by three devices , annual energy savings would be an estimated four million kWh , generating 2,200 metric tons of CO2 emissions .

3 SETTING SUSTAINABILITY GOALS AND KEY PERFORMANCE METRICS The challenge in setting sustainability goals within a digital transformation strategy is to understand the total cost of ownership as well as the carbon-burdens [ 12 ][ 13 ] related to the manufacturing , operation and data transmission ( energy consumption ), end-of-life disposal and future upgrades and replacements of the added IoT components . In section 2.1 of this article , the examples given provided ways of enhancing the ROI for the business , while also demonstrating the additional savings and measurable impact from CO2 reduction . However , as with any project and implementation , total cost must play a decision in the way the technology is implemented . Taking into consideration costs such as data retention and cloud , plus design and infrastructure efficiencies can negatively offset the project ROI if not considered up front .

To achieve the above , a framework that organizes information and guides actions is needed . This article does not define such a framework , but it can list some of the elements :

• Assess the scope and objectives of the digital transformation initiative vis-à-vis the sustainability goals and associated political , economic , social , technological , regulatory , legal and environmental factors , Requirements should represent a clear understanding of manufacturing and business objectives and the part OPEX and lean play in identifying key pain points and how digital transformation and digital capabilities are defined and help accelerate from manual to automated , reactive to predictive .

• Identify the key stakeholders and their needs , expectations and interests .

• Establish specific , measurable , achievable , relevant , time-bound goals for both business outcomes and sustainability impacts .

• Develop a digital transformation roadmap ( best options , best cost-benefit ratio ) and an implementation plan .

• Monitor the progress ( metrics ),

To achieve these goals , the organization must implement innovative processes that will aid in developing strategies to overcome the challenges associated with IT / OT convergence in IoT systems , integrate business operations with digital transformation , reduce internal organizational and procedural frictions during the transformation journey , and expand the scope of the transformation initiative to incorporate sustainability goals . An upcoming IIC BIDX framework document will address these innovative transformation processes .

4 CONCLUSION

Digital Transformation and its benefits for solving ever increasing demands upon manufacturing to remain agile , resilient and efficient is well known , providing substantial savings and should be the goal of every industry . The ability to use digital transformation as a mechanism to achieve

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